Wisconsin Statutes
Wis. Stat. § 553.27 (2026)
General registration provisions; offering circular; consent to service of process
✓ current as of July 2026
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553.27(2)(2) If the division finds that the applicant has failed to demonstrate that adequate financial arrangements have been made to fulfill obligations to provide real estate, improvements, equipment, inventory, training or other items included in the offering and if the franchisee so requests, the division may by rule or order require the escrow of franchise fees and other funds paid by the franchisee or subfranchisor until no later than the time of opening of the franchise business, or, at the option of the franchisor, the furnishing of a surety bond as provided by rule of the division, if the division finds that such requirement is necessary and appropriate to protect prospective franchisees or subfranchisors.
553.27(4)(4) No franchise subject to registration under this chapter may be sold in this state unless a copy of an offering circular is provided to the prospective franchisee at least 14 days prior to the execution by the prospective franchisee of any binding franchise or other agreement with the franchisor or any affiliate of the franchisor or at least 14 days prior to the payment of any consideration to the franchisor or any affiliate of the franchisor, whichever first occurs. The offering circular may be in a form that the division requires by rule, in a form permitted under 16 CFR 436 or in a form permitted by a successor to that regulation.
553.27(10)(10) Every franchisor who files a notification shall file with the division, in the form that the division by rule prescribes, an irrevocable consent appointing the division to be the applicant’s attorney to receive service of any lawful process in any civil action against the applicant or the applicant’s successor or personal representative that arises under this chapter or any rule or order under this chapter after the consent has been filed, with the same force and validity as if served personally on the person filing the consent. A person who has filed a consent in connection with a previous registration or exemption under this chapter need not file another. Service may be made by leaving a copy of the process in the office of the division, but it is not effective unless the plaintiff, who may be the division in an action instituted by the division, sends notice of the service and a copy of the process by registered or certified mail to the defendant or respondent at his or her last address on file with the division, and the plaintiff’s affidavit of compliance with this subsection is filed in the case on or before the return day of the process, if any, or within the time that the court allows.
553.27 HistoryHistory: 1971 c. 241; 1981 c. 54 ss. 10, 11, 32; 1981 c. 314; 1987 a. 381; 1995 a. 27, 364; 2001 a. 102; 2007 a. 150.
Notes of Decisions
Cited in 4
cases, 1997–2019 · leading case: Kinship Inspection Serv., Inc. v. Newcomer, 605 N.W.2d 579 (Wis. Ct. App. 1999).
Kinship Inspection Serv., Inc. v. Newcomer, 605 N.W.2d 579 (Wis. Ct. App. 1999). “See § 553.27(4). ¶ 32. Fraudulent practices of a franchisor are prohibited by § 553.”
Braatz, L.L.C. v. Red Mango FC, L.L.C, et a, 642 F. App'x 406 (5th Cir. 2016). “Wis. Stat. § 553.27 (4). This statute creates a “concrete” and “particularized” legal right, which the Braatzes alleged Red Mango violated.”
Burger Dynasty, Inc. v. Bar 145 Franchising, L.L.C., 2019 Ohio 4006 (Ohio Ct. App. 2019). “Id at *4, citing Wis. Stat. § 553.27 (4). If the franchisor fails to register the information and that omission was material in the decision to purchase the franchise, the franchisee may rescind the agreement.”
Sterling Vision DKM, Inc. v. Gordon, 976 F. Supp. 1194 (E.D. Wis. 1997). “Wis. Stat. § 553.27 (4)(1993). It is undisputed that D & K did not provide Gordon with an offering circular prior to the execution of the franchise agreement or prior to the receipt of any consideration.”
— Wis. Stat. § 553.27(4) — 2 cases
Kinship Inspection Serv., Inc. v. Newcomer, 605 N.W.2d 579 (Wis. Ct. App. 1999). “See § 553.27(4). ¶ 32. Fraudulent practices of a franchisor are prohibited by § 553.”
Braatz, L.L.C. v. Red Mango FC, L.L.C, et a, 642 F. App'x 406 (5th Cir. 2016). “Wis. Stat. § 553.27 (4). This statute creates a “concrete” and “particularized” legal right, which the Braatzes alleged Red Mango violated.”
— Wis. Stat. § 553.27(8) — 1 case
Kinship Inspection Serv., Inc. v. Newcomer, 605 N.W.2d 579 (Wis. Ct. App. 1999). “See § 553.27(4). ¶ 32. Fraudulent practices of a franchisor are prohibited by § 553.”
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